Contributions to the CPP/QPP (box 16/17) when the CPP/QPP pensionable earnings (box 26) are less than $3,500 Print this page

 

Current status: Fixed in version 4.1

 

Problem:

Contributions to the CPP/QPP (box 16/17) are not being calculated when the CPP/QPP pensionable earnings (box 26) are less than $3,500 (T4 and RL-1 for Québec) and the number of periods of pensionable employment is less than the total number of pay periods for the year (i.e. the employee did not work the entire year).

 

Solution:

a) For the CPP:
Override box 16 with the required box 16 amount. Generally, this amount is equal to the result of the following calculation: (CPP pensionable earnings – (3500/total number of pay periods in the year) x number of pay periods of pensionable earnings) x 4.95%

b) For the QPP:

Override box 17 with the required box 17 amount. Generally, this amount is equal to the result of the following calculation: (QPP pensionable earnings – (3500/total number of pay periods in the year) x number of pay periods of pensionable earnings) x 5.025%